The makeup industry is booming. According to Forbes, the global beauty industry is a $532 billion business, with projected annual sales growth of 5% – 7%, and expected to reach $800 billion by 2025.
Now is the time to take advantage of the makeup business growth trend.
And while you might think that’s great news for consumers, it poses a serious threat to small businesses looking to enter the industry.
If you want to start an online makeup business, you’ll face stiff competition from big players like Amazon, eBay, Walmart, Target, and Ulta Beauty.
But don’t despair. You can carve out a niche and make money from your passion with creativity and clever marketing tactics.
Here’s what you need to know about starting a makeup brand in 2023.
Finding A Niche In The Makeup Business
The beauty industry is constantly evolving, with new products being introduced daily.
If you want to make money, you’ll have to find a trend or niche that people are already buying but is slightly different from whatever is already out there.
There are many ways to identify trends, including looking at social media posts, reading reviews, talking to customers, and researching yourself.
Once you’ve identified your target market, you can start building a plan around how you can provide value to them.
For example, seeing many people sharing pictures of themselves wearing eye-shadow might mean that people are interested in trying out new eye colors.
So you could offer a special deal where you give away free samples of new eyeshadow palettes.
Business Plan
Before starting a business, you must think about your goals and objectives. You need to know where you want to go and why you want to get there.
Also, you must write down everything you know about your market, competitors, and customers. Your business plan should include the following:
- A company overview
- Market research analysis
- A timeline of milestones
- A marketing strategy
- Financial forecast and risk assessment.
These steps will give you insight into whether your idea is feasible and sustainable enough to become a reality.
Funding
Starting a business requires capital; it often takes someone else’s money to make it happen.
For example, if you want to open an online make-up store, you might consider asking friends and family members for help.
Or if that’s not an option, you’ll probably need some outside funding. There are three main options for raising funds:
- Borrowing.
- Crowdfunding.
- Investing.
Each one offers different advantages, depending on your situation. You can approach your local bank to borrow money for a small business loan.
Banks typically charge high-interest rates, so be sure to shop around to see if you can find a better deal. Another option is to look into microloans.
These loans are smaller than traditional ones, but they still require collateral.
If you decide to raise money through crowdfunding, you’ll need to set up a campaign on sites like Kickstarter or Indiegogo.
While these platforms allow anyone to participate, they usually target specific industries — such as technology or art.
Crowdfunding campaigns cost nothing upfront, but backers pay between 5% and 15% of the total amount raised. Finally, you can seek investments from venture capitalists.
This type of financing doesn’t work for everyone, but it does provide access to large amounts of cash.
Venture capitalists tend to invest in companies that already show promise. They won’t just give you money without expecting something in return.
Create A Unique Product
Once you’ve found a trend and made a business plan, it’s time to think about creating a product specifically designed to meet the needs of your target market.
Think about whether you’d rather sell one product or several. Do you prefer offering a solution to a problem, or do you enjoy helping people express their creativity?
Asking yourself these questions will help you decide on the right product for your audience.
Get Creative
If you choose to focus on providing solutions, you’ll probably have to figure out a way to manufacture your product.
This process can take up a lot of time and resources, especially if you’re starting from scratch.
However, it’s worth it because once you have a successful product, you’ll be able to charge a premium price for it.
Test Your Idea
You may not realize this right now, but your initial idea needs to be tested. It’s essential to test your concept before investing too much time and energy into it.
Try to get feedback from friends and family members who aren’t involved in the industry.
They can tell you whether your product will appeal to others and let you know if you should stick with your original idea or try something else.
Engage in some market research to get an initial response to the product/service you want to sell.
Find An Audience
Now that you have a good idea of what kind of product you’d like to create, it’s time to find potential buyers.
There are two main options: You can either build your own website or launch a Facebook page. You’ll first need to sign up for a domain name, whichever route you decide to go down.
Then you’ll need to set up hosting so visitors can access your site. Finally, you’ll need to promote your business by posting content regularly.
Build Relationships
Once you have established a solid base of followers, it’s time to start making connections. Reach out to other businesses in your field and ask them for advice.
You never know when you’ll learn something useful. Also, look for opportunities to network online.
Join groups related to your business, participate in forums, and share information on social media.
Keep Improving
As you continue to grow your brand, you’ll eventually reach a point where you have enough experience under your belt to start charging more money for your services.
But don’t stop there! Continue to improve your skills and knowledge. Read books, attend seminars, and listen to podcasts.
If you want to become a master at your craft, then keep learning every day.
Use Online Analytic Tools
Using analytics tools is the best way to ensure you’re getting the most out of your marketing efforts.
These tools help you track the success of each campaign, allowing you to adjust your strategy accordingly.
Conclusion
Starting a makeup business is easier than you might think. The hardest part is deciding which direction to head in.
Once you’ve made that decision, all you have to do is follow these steps, and you’ll soon be on your way to becoming a successful entrepreneur.
As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.
Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.
- How To Start A Hot Shot Business [2023] - November 24, 2022
- Basic Personal Finance Concepts [2023] - November 22, 2022
- Where To Put Retirement Money After Retirement [2023] - November 4, 2022
